Business Scale-up and Productivity (BSP) – Regional Economic Growth through Innovation Program (REGI) – FedNor

ByMaurice

Description:

The Business Scale-up and Productivity (BSP) Stream aims to accelerate the growth of firms and assist with the adoption and adaptation of new, innovative technologies that support scale-up, productivity, development of and entry into new markets to help companies become competitive in both domestic and global markets.

Comments on Funding:

Funding is up to 50% of the eligible and supported project costs to a maximum of $500,000 per project. On an exceptional basis, FedNor may consider funding investments above that amount.

Total government funding (including federal, provincial and municipal) for a project cannot exceed 75% of supported eligible non-capital costs and 50% of supported eligible capital costs.

Applicants must have secured funding of at least 50% towards the balance of the project’s eligible costs. A combination of committed funding from accredited investors (angels, venture capitalists), growth capital, strategic partners, commercial financing, other government departments, and working capital is acceptable.

Eligibility:

The applicant must:

  • For-profit organizations including an individual operating a business, partnerships, social enterprises, incorporated companies, corporations or co-operatives, or an Indigenous organization such as Indigenous/First Nation/Métis Settlement owned businesses, and all other types of enterprises.
  • Not-for-profit organizations: that provide services to businesses to support different stages of development to accelerate growth, enhance and assist scale-up (productivity enhancement, technology adoption, demonstration, etc.) or market expansion (e.g., sector based business-groups or associations, regional export promotion organizations, etc.).
  • All eligible applicants must be legal entities capable of entering into legally binding agreements.
  • Project benefits must accrue to Northern Ontario.
  • Priority will be given to for-profit organizations.

To be considered eligible for funding, applicants must demonstrate:

  1. A sustainable business model normally supported by two (2) years of operations.
  2. 2Financial capacity to complete the project and repay the contribution in full.
  3. Managerial, technical, and operational capacity to achieve the project’s stated objectives in a timely manner.
  4. Market/industry demand (e.g., how the project addresses a significant gap in the market; global opportunity to be seized within Canada; and evidence that Northern Ontario is uniquely positioned to capture market share).
  5. Potential for market growth, diversification of export markets and/or participation in global value chains.
  6. A viable project plan with achievable outcomes, supported by verifiable cost estimates.

Applications Steps:

1

Phase 1: Submit an Application for Financial Assistance providing key contact and project information; 
✔ Applications can be completed and submitted electronically, or printed and sent to the nearest FedNor office.
✔ Applicants will receive written or electronic confirmation that their Application has been received.
✔ The results of the Application review will be communicated to applicants electronically or in writing. 

2

Phase 2: Upon initial evaluation, FedNor will provide an electronic or written decision on whether the project should proceed to Phase Two. If selected to proceed, applicants will be invited to submit a Phase Two Detailed Application and provide supporting documentation. Applications will undergo a due diligence process where they are assessed against a number of factors.

Documentation Needed:

  • A sustainable business model and a track record of profitability for the past two (2) years, as demonstrated in financial statements for more established companies.
  • Financial capacity to complete the project and repay the contribution in full.
  • Managerial, technical, and operational capacity to achieve the project’s stated objectives in a timely manner.
  • Market/industry demand (e.g., how the project addresses a significant gap in the market; global opportunity to be seized within Canada; and evidence that Northern Ontario is uniquely positioned to capture market share). 
  • Early-stage companies must provide evidence of market demand and/or market traction, demonstrated by revenue as shown in financial statements, signed sales or distribution agreements, purchase orders, paid pilot or demonstration projects, or regulatory approval if applicable. For greater clarity, companies at earlier stages of development focusing on demonstration and commercialization should be able to demonstrate sustainability within three to five years to be considered under this program.
  • Potential for market growth, diversification of export markets and/or participation in global value chains.
  • A viable project plan with achievable outcomes, supported by verifiable cost estimates.

About the author

Maurice

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Ontario to identify and maximize government grants to grow their business. Click here to learn more about Moe’s background and how he can help your business.

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